Analysis of Stackelberg Leadership Model Output Behavior under the Mechanism of Expanding Market Price

Tyrone T. Lin, Shu Yen Hsu, Chiao Chen Chang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This study explores the competitive mechanism of firms in a duopolistic market and constructs a model of duopolistic firms' optimal output and maximum profit according to the Stackelberg Leadership Model. By taking Taiwan's dairy market as an example, the paper analyzes how the leading firm, in the state of full information disclosure, makes decision analysis to determines its output strategy according to the reaction function of the follower firm. At the same time, the output strategy of the follower firm is determined according to the output strategies of the leading firm. The action of the firms has sequence, and through the dynamic cycle process to achieve the market equilibrium and to maximize the oligopolistic firm profit.

Original languageEnglish
Title of host publication2018 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2018
PublisherIEEE Computer Society
Pages1603-1607
Number of pages5
ISBN (Electronic)9781538667866
ISBN (Print)9781538667866
DOIs
Publication statusPublished - Jan 9 2019
Event2018 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2018 - Bangkok, Thailand
Duration: Dec 16 2018Dec 19 2018

Publication series

NameIEEE International Conference on Industrial Engineering and Engineering Management
Volume2019-December
ISSN (Print)2157-3611
ISSN (Electronic)2157-362X

Conference

Conference2018 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2018
Country/TerritoryThailand
CityBangkok
Period12/16/1812/19/18

Keywords

  • decision analysis
  • Oligopoly market
  • optimal productivity
  • Stackelberg leadership model

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

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